I think the biggest hurdle for any challenger to Amazon is going to be competing on the price of e-books. Amazon's artificially low e-book prices undercuts all of their competitors (B&N, Kobo, etc).
Rakuten + Walmart are going to have to provide some value add in order to give people a compelling reason to buy a Kobo device. Maybe partnering with Indie authors through Smashwords and Scribd to create a service like Kindle Unlimited. Or hype up the ability to read for free via Project Gutenberg and local libraries.
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